Australand Property Group has received a takeover proposal from Singapore-listed Frasers Centrepoint for cash consideration of $4.48 per share, which the target says is superior to an offer from Stockland.
At 11.46am (AEST), shares in Australand were 5.92 per cent higher at $4.565, while Stockland shares rose 2.03 per cent to $4.02, against a benchmark index fall of 0.42 per cent.
The target intends to recommend the offer, which values the company at $2.594 billion, if it becomes binding and in the absence of a superior proposal.
Australand last week agreed to provide Stockland with access to due diligence material after it lobbed a sweetened offer of $4.35 per share, which valued the target at $2.5 billion.
Stockland noted the rival offer, saying it would consider its options and provide an update in due course.
Under the fresh rival offer, Australand shareholders would receive an expected first-half distribution of 12.75c per stapled security and an additional distribution that accrues to the date the Frasers offer becomes unconditional, representing the expected second-half distribution of 12.75c per share.
The expected first-half distribution takes the proposal to $4.6075 per share, a 19 per cent premium to Australand's volume weighted average price for the three months to March 18, the day before Stockland announced its 19.9 per cent interest in Australand.
Australand said the offer required a period of exclusive due diligence, which it has granted.
The offer is subject to a minimum shareholder acceptance of 50.1 per cent and Foreign Investment Review Board approval.